Waterways Corporation has recently acquired a small manufacturing operation in British Columbia that produces one of its more popular items. This plant will provide these units for resale in retail hardware stores in British Columbia and Alberta. Because the budget prepared by the plant was incomplete, Jordan Leigh, Waterways' CFO, was sent to B.C. to oversee the plant's budgeting process for the second quarter of 2021. Jordan asked the various managers to collect the following information for preparing the second-quarter budget. Sales Unit sales for February 2021 Unit sales for March 2021 Expected unit sales for April 2021 Expected unit sales for May 2021 Expected unit sales for June 2021 Expected unit sales for July 2021 Expected unit sales for August 2021 Average unit selling price $97,000 109,000 117,000 122,000 127,000 142,000 167,000 $12 Based on the experience in the home plant, Jordan has suggested that the B.C. plant keep 10% of the next month's unit sales in ending inventory. The plant has contracts with some of the major home hardware giants, so all sales are on account: 50% of the accounts receivable is collected in the month of sale, and the balance is collected in the month after sale. This was the same collection pattern as the previous year. The new plant has no bad debts. Direct Materials The combined quantity of direct materials (consisting of metal, plastic, and rubber) used each unit is 1.30 kg. Metal, plastic, and rubber together amount to $1.50 per kg. Inventory of combined direct materials on March 31 consisted of 15,275 kg. This plant likes to keep 10% of the materials needed for the next month in its ending inventory. Fifty percent of the payables is paid in the month of purchase, and 50% is paid in the month after purchase. Accounts payable on March 31 will total $127,200. Direct Labour Labour requires 15 minutes per unit for completion and is paid at an average rate of $10 per hour. Manufacturing Overhead Indirect materials $0.40 per labour hour Indirect labour $0.40 per labour hour Utilities $0.40 per labour hour Maintenance $0.30 per labour hour Salaries $44,000 per month Depreciation $16,200 per month Property taxes $2,100 per month Insurance $1,500 per month Janitorial $2,500 per month Selling and Administrative Variable selling and administrative expenses per unit are $1.50. Advertising $15,000 a month Depreciation $2,300 a month Insurance $1,100 a month Other fixed costs $3,500 a month Salaries $61,000 a month Other Information The cash balance on March 31 will be $129,000, but Waterways has decided it would like to maintain a cash balance of at least $500,000 beginning on April 30. The company has an open line of credit with its bank. The terms of the agreement require borrowing to be in $1,000 increments at 3% interest. Borrowing is considered to be on the first day of the month and repayments and interest payments are on the last day of the month. In May, $730,000 of new equipment to update operations will be purchased. Three months' insurance is prepaid on the first day of the first month of the quarter. For the second quarter of 2021, prepare a cash budget. (Round answers to 0 decimal places, e.g. 2,575.) WATERWAYS CORPORATION British Columbia Production Plant Cash Budget for the 2nd Quarter, 2021 April May June Total Beginning Cash Balance 129000 593538 500178 129000 $ $ $ $ Add Cash Receipts Cash Collections 1356000 1434000 1494000 4284000 Total Available Cash 1485000 2027538 1994178 4413000 Less Cash Expenditures Direct Materials 242250 235073 246870 724193 Direct Labour 293750 306250 321250 921250 Manufacturing Overhead 92663 94538 96788 283988 Selling and Administrative 255000 262500 270000 787500 Equipment Purchase 730000 730000 Prepaid Insurance 7800 7800 Total Expenditures 891463 1628360 934908 3454730 Excess of Available Cash Over Cash Disbursements $ $ Beginning Cash Balance Borrowings Cash Collections Direct Labour Direct Materials Cash Expenditures Prepaid Insurance Ending Cash Balance Equipment Purchase Excess of Available Cash Over Cash Disbursements Financing Interest Manufacturing Overhead Cash Receipts Repayments Selling and Administrative Total Available Cash Total Expenditures Total Financing